Dear Red Alert Reader,

Trading services are battling it out to win over more clients, and that ultimately benefits investors just like you.

Robinhood is a perfect example.

Founded in 2013, Robinhood has made a name for itself because of its easy-to-use format, commission-free trades, and cash-management services.

And now, it’s offering investors two new tools to utilize: Fractional investing and dividend reinvestment programs (DRIPs). With fractional investing, you can buy as little as $1 worth of stock.

If you enroll a stock in a DRIP, instead of cashing out a dividend payout, you can use it to buy more shares of the stock for free.

A few of the companies that many of our members own, like Innovative Industrial Properties Inc. (NYSE: IIPR), Scotts-Miracle Gro Company (NYSE: SMG), and Constellation Brands (NYSE: STZ), offer fractional investing and DRIPs.

So today, the National Institute for Cannabis Investors is going to give you all the details on how to utilize these investing tools as a part of your investing strategy.

Let’s start with fractional investing.

Fractional Investing on Robinhood

We know that many of you have a “$25 Plan” when it comes to cannabis investing, which involves buying a few shares of cannabis stocks each week and spending a total of $25.

Well, now you can buy $25 of stock each week in individual companies no matter how much the stock is trading for!

You may really like Constellation Brands but don’t want to pay $169 for just one share.

Well, now you can invest as little as $1, and you will receive a fraction of STZ shares.

You could also buy $25 worth of STZ.

Or $50 worth of STZ.

Or $100 worth of STZ.

It’s also simple to get started.

Let’s stick with Constellation Brands as an example.

When you click on the “Trade” button, the option to buy the stock will appear.

Click “Buy.”

Then, when it asks you for the number of shares that you want to buy, you can type in the fractional amount. For instance, if you wanted to buy $50 worth of Constellation Brands at $169.42 per share, you would enter 0.30 for the number of shares.

So whether you wanted to invest $1 or $100 a week, you now have that option on Robinhood.

It’s a great way to stick to a budget while also being able to buy into the high-growth cannabis industry.

Next, let’s take a look at DRIPs.

Dividend Reinvestment Programs on Robinhood

Utilizing a DRIP is a great strategy to receive more shares of a company without having to pay any additional money.

Here’s how it works.

Some investors treat dividends as income payments, which is perfectly fine. Each quarter, when a company pays dividends to its shareholders, some investors will take that money out of their trading account and put it into their bank account.

However, with a DRIP, you can use that dividend payment to buy more shares of a stock without having to invest more money. That dividend payment is simply used to buy shares of the company, and it doesn’t matter if the dividend payment is less than what the stock price is trading for.

A DRIP will buy fractional shares.

If you believe in the long-term outlook of the company, continually having more shares added to your account can really add up over time.

Conclusion

As part of a cannabis investing strategy, fractional investing and DRIPs are great tools to utilize.

At the National Institute for Cannabis Investors, we also have what we call the “Vault,” which is one of the most comprehensive cannabis databases in the world.

From ETFs to penny stocks, we currently have over 300 entries in the database.

As we analyze each company, we provide ratings on a simple scale from 0-5.

You can learn more about the “Vault” right here.

To your investing success,